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Sat Feb 9, 2019, 02:19 AM

I'm a CPA with a small tax practice

My husband and I are solid middle class with two college age dependents. Nothing changed from last year to this year. Last year our refund was 4000 this year we owe 3000. Thatís a 7000 swing not in our favor we are both sick about this. Iíve prepared a few returns (W2s and 1099s are just now being received) and refunds are significantly less or people owe for the first time in years. Itís gonna be tough tax season.

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Reply I'm a CPA with a small tax practice (Original post)
ALBliberal Feb 9 OP
Liberal In Texas Feb 9 #1
TreasonousBastard Feb 9 #2
Cha Feb 9 #3
mercuryblues Feb 9 #17
Cha Feb 9 #18
mercuryblues Feb 9 #21
BamaRefugee Feb 9 #94
Indykatie Feb 9 #114
mercuryblues Feb 9 #132
Neema Feb 9 #113
Norbert Feb 9 #110
watoos Feb 9 #32
mercuryblues Feb 9 #39
SWBTATTReg Feb 9 #41
watoos Feb 9 #44
BigmanPigman Feb 9 #105
pangaia Feb 9 #115
janx Feb 9 #122
pangaia Feb 9 #124
airplaneman Feb 9 #136
StarryNite Feb 9 #4
peacefrogman Feb 9 #5
ALBliberal Feb 9 #12
Achilleaze Feb 9 #16
spinbaby Feb 9 #23
Achilleaze Feb 9 #25
D_Master81 Feb 9 #75
janx Feb 9 #85
Liberty Belle Feb 9 #117
Freddie Feb 9 #35
DBoon Feb 9 #59
erronis Feb 9 #87
TuxedoKat Feb 9 #22
still_one Feb 9 #33
watoos Feb 9 #45
still_one Feb 9 #54
Ms. Toad Feb 9 #120
jmowreader Feb 9 #62
still_one Feb 9 #66
Mr.Bill Feb 9 #100
still_one Feb 9 #102
shanti Feb 9 #81
still_one Feb 9 #101
lindysalsagal Feb 9 #42
DeminPennswoods Feb 9 #58
spooky3 Feb 9 #78
Doremus Feb 9 #82
arthurgoodwin Feb 9 #103
arthurgoodwin Feb 9 #104
Doremus Feb 9 #108
enid602 Feb 9 #97
dalton99a Feb 9 #6
PatrickforO Feb 9 #7
SunSeeker Feb 9 #8
KY_EnviroGuy Feb 9 #9
pansypoo53219 Feb 9 #10
erronis Feb 9 #89
nitpicker Feb 9 #11
Hortensis Feb 9 #14
Recursion Feb 9 #50
Hortensis Feb 9 #13
Achilleaze Feb 9 #15
erronis Feb 9 #92
Adrahil Feb 9 #19
DeminPennswoods Feb 9 #60
lanlady Feb 9 #20
beachbum bob Feb 9 #24
still_one Feb 9 #36
Squinch Feb 9 #26
mucifer Feb 9 #27
Skidmore Feb 9 #28
Canoe52 Feb 9 #29
Turbineguy Feb 9 #30
Fresh_Start Feb 9 #31
Gothmog Feb 9 #34
still_one Feb 9 #37
Gothmog Feb 9 #52
still_one Feb 9 #56
Recursion Feb 9 #47
Gothmog Feb 9 #51
uponit7771 Feb 9 #88
still_one Feb 9 #38
ALBliberal Feb 9 #63
oasis Feb 9 #40
underpants Feb 9 #43
Recursion Feb 9 #46
JustAnotherGen Feb 9 #48
mainer Feb 9 #49
MichMan Feb 9 #53
Demsrule86 Sunday #146
Bettie Feb 9 #55
progressoid Feb 9 #70
Bettie Feb 9 #72
progressoid Feb 9 #73
riverwalker Feb 9 #57
NCjack Feb 9 #61
aikoaiko Feb 9 #64
customerserviceguy Feb 9 #65
Iggo Feb 9 #68
dhol82 Feb 9 #95
customerserviceguy Feb 9 #99
ALBliberal Sunday #147
customerserviceguy Sunday #154
workinclasszero Feb 9 #67
CaptainTruth Feb 9 #69
ooky Feb 9 #130
Coventina Feb 9 #71
Kensan Feb 9 #106
FreeJoe Feb 9 #74
samnsara Feb 9 #76
CountAllVotes Feb 9 #77
JustABozoOnThisBus Feb 9 #79
sarcasmo Feb 9 #80
fescuerescue Feb 9 #83
UCmeNdc Feb 9 #90
zentrum Feb 9 #84
George II Feb 9 #86
dhol82 Feb 9 #96
George II Feb 9 #98
sarcasmo Feb 9 #107
Gothmog Feb 9 #91
rwsanders Feb 9 #93
Voltaire2 Feb 9 #109
Ferrets are Cool Feb 9 #111
pangaia Feb 9 #112
janx Feb 9 #119
ALBliberal Sunday #148
Honeycombe8 Feb 9 #116
Neema Feb 9 #118
Ms. Toad Feb 9 #121
Fresh_Start Feb 9 #126
Ms. Toad Feb 9 #131
Fresh_Start Feb 9 #134
Ms. Toad Feb 9 #141
Mars and Minerva Feb 9 #138
Ms. Toad Feb 9 #140
Mars and Minerva Sunday #144
roamer65 Sunday #155
Mars and Minerva Sunday #157
LuvNewcastle Feb 9 #123
Lefta Dissenter Feb 9 #125
voteragain Feb 9 #127
MadDAsHell Feb 9 #128
Pobeka Feb 9 #129
Scruffy1 Feb 9 #133
Scruffy1 Feb 9 #135
roamer65 Feb 9 #137
C Moon Feb 9 #139
marlakay Feb 9 #142
C Moon Sunday #143
Mars and Minerva Sunday #145
C Moon Sunday #150
Mars and Minerva Sunday #151
C Moon Sunday #153
TeamPooka Sunday #149
SleeplessinSoCal Sunday #152
roamer65 Sunday #156

Response to ALBliberal (Original post)

Sat Feb 9, 2019, 02:22 AM

1. Somehow I knew Fascist America

wasn't going to be all that great 2 years ago.

Kind of nervous about my tax debt for last year too....have no idea how to figure it out. Will be getting the info to the accountant soon.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 02:22 AM

2. It's gonna be tough, and I have no doubt my Republican...

congresscritter is going to get an earful.

As he should.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 02:25 AM

3. I'm so sorry, ALBliberal!

I know nothing about how the trump crime family made this happen.. have just seen a lot of people who are upset over how much they owe this year.. including trump voters.

It would seem like this should be another thing that will help get him kicked out of the office he cheated to get into.

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Response to Cha (Reply #3)

Sat Feb 9, 2019, 06:14 AM

17. I think the biggie is

the change in tax brackets. Which led to lower withholdings in the paycheck. His supporters looked at it like getting a raise. Which led to companies getting by with skimpy, if any at all, actual raises. Now they are finding out that "pay increase" comes at a cost. They have to pay that raise back.

Coupled with fewer tax deductions this is going to be a shit show for republicans. Dems need to run on this in 2020, big time.

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Response to mercuryblues (Reply #17)

Sat Feb 9, 2019, 06:23 AM

18. Thanks for the explanation, mercuryblues!

Sounds like the GOPutins pulled an expedient scam that's Backfiring

Now I remember people on here talking about this when the tax cuts happened.

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Response to Cha (Reply #18)

Sat Feb 9, 2019, 06:58 AM

21. We filed an extension for ours.

We know it is going to be bad. We usually pay in a few hundred or get a small return. All of our eligible deductions are gone this year.


The timing is perfect for GOPers. After the 2018 elections. If this kicked in last tax season, they all would have been voted out. They are hoping their base forgets by the 2020 elections. And remember the home interest deduction hits those in blue states more than those in red states, as home prices are higher.


After the 2020 elections the middle class tax "tax break" will get even worse. This is why the Democrats need to hammer this point home and expose what 2020 tax rates will be like for the middle class in their 2021 returns. Unfortunately the will not be able to completely fix this mess for 2021, but they can for 2022. There won't be enough time between taking office and tax season.

I wonder where all the people are on my local news feed that loved their "tax cut" last year. They were bragging about bringing home more money in their paychecks. I tried telling them they were going to be sorry when they find out they owe money at the end of the year. For that you can imagine the names I was called. I laughed and told them I hope they get everything they voted for.

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Response to mercuryblues (Reply #21)

Sat Feb 9, 2019, 03:03 PM

94. Don't you have to pay your estimated tax anyway when you file an extension? I had to do that in the

past, but if I can get an extension and still have some time to get the taxes due together (assuming I have a wildly different amount to pay like lots of people ae having), that would be great.

Any info appreciated!

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Response to BamaRefugee (Reply #94)

Sat Feb 9, 2019, 06:24 PM

114. Filing Tax Extension + Impact on Higher Income Individual

I usually take the extension route (filing due in Oct) but I send in an additional payment on 4/15 if my rough estimate shows I'm going to owe quite a bit more. In the past that has meant me owing several thousand more than what was withheld during the year. There is a penalty if you have paid in less than a certain % of your tax liability though I have read the IRS is adjusting that penalty threshold this year. Too late now but there are a number of calculators out there that allow folks to estimate their tax liability under the new rules. The one I used is https://www.nerdwallet.com/taxes/tax-calculator . Their estimate w/h been spot on had I remembered I had to pay taxes on the $3200 that my Employer paid for life insurance in excess of $50K. When I used it though I didn't believe it b/c it indicated I'd be getting a large (for me) refund.

My Personal Tax Story
I am an example of why this "tax cut" was misguided. Instead of paying an additional $2,000 - $3,000 as in past years, I'm getting a $3400 refund after also getting an additional $200 a month increase on my check during the year. I started having the extra $200 withheld for additional Federal taxes in March which was an additional $2000 paid in. I'm a HOH with 1 college age dependent and was still able to itemize b/c of high charitable donations even though I maxed out at $10K for SALT in INDIANA. You don't have to live in CA, NY or NJ to be impacted by the new SALT limit. Dems better raise hell and run on getting Trump's "tax cut" reversed as a major platform issue for 2020. This is definitely NOT the lower or middle income tax cut people need.

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Response to BamaRefugee (Reply #94)

Sat Feb 9, 2019, 08:20 PM

132. yes

We sent a check in with it. But we have no clue if it was enough. Hope so because we even had a higher rate taken out of the paychecks.

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Response to mercuryblues (Reply #21)

Sat Feb 9, 2019, 06:23 PM

113. I file for an extension every year because I'm a freelancer and the timing for funding my IRA

works better that way. BUT, I always have to pay whatever I owe in April anyway (PLUS my quarterlies). The extension doesn't change that. I wish it did.

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Response to Cha (Reply #18)

Sat Feb 9, 2019, 06:09 PM

110. And now we know why So many 'pubs left the House.

They didn't want to be around when what's left of the middle class came calling and bringing tar and feathers. Cowards all.

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Response to mercuryblues (Reply #17)

Sat Feb 9, 2019, 08:33 AM

32. Put simply,

people got a raise that came from their refund.

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Response to watoos (Reply #32)

Sat Feb 9, 2019, 09:05 AM

39. Yes

They were actually calling it a raise.

I knew it would be bad, but not this bad. I would call it a loan with a high interest rate.

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Response to mercuryblues (Reply #39)

Sat Feb 9, 2019, 09:16 AM

41. Yes, a loan w/ a high interest rate. You are pretty well paying for it totally. This points out...

that folks need to adjust their withholdings if they can on an annual basis to prevent this, after all, would you give anyone else an interest free loan? That's basically what is happening here (to the Fed. government).

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Response to mercuryblues (Reply #39)

Sat Feb 9, 2019, 09:35 AM

44. I get a pension,

and I deduct federal taxes from it. I never expected them to change my federal withholding but they did without my approval.

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Response to watoos (Reply #44)

Sat Feb 9, 2019, 03:53 PM

105. Can they legally do that?

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Response to mercuryblues (Reply #17)

Sat Feb 9, 2019, 06:26 PM

115. So, lower withholding lower refund.

That makes sense.

I have seen many, many comments on other sited about people complaingin about getting a smaller refundd OR owing more, when in actuallity in some/many(I don;t knoiw) cases it is bacause there was less taken out to begin with.

This is NOT to say people aren;t getting fucked over...


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Response to pangaia (Reply #115)

Sat Feb 9, 2019, 06:53 PM

122. The problem is that for many people,

depending on where they land in their tax bracket, the lower withholding was so miniscule that it didn't seem to be much of a benefit. Even slightly higher taxes, health care premiums, or cost of living can eat that up in a minute.

It was not exactly the "$4000 raise" for a typical family that was touted by this administration.

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Response to janx (Reply #122)

Sat Feb 9, 2019, 06:58 PM

124. yeah, the whole thing was and is so freakin' obvious to anyone with a functioning brain..

which, unfortunately, leaves out tens of millions of Americans.


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Response to mercuryblues (Reply #17)

Sat Feb 9, 2019, 08:37 PM

136. I'm good at math and I could see it coming from the beginning.

Like giving you $100 at the beginning of the month but taking $30 per week.
Made people thing they were getting something.
The real bad part is more gets taken away in 2019 and future years.
The kicker in the end 2026 you loose the increased standard deduction and don't get anything back in lost deductions.
By 2026 most will see a 50-60% increase in tax paid (99%)
-Airplane

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 02:41 AM

4. Now I'm really getting scared!

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Response to StarryNite (Reply #4)

Sat Feb 9, 2019, 02:50 AM

5. Me, too.

 

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Response to StarryNite (Reply #4)

Sat Feb 9, 2019, 05:22 AM

12. In a nutshell I believe homeowners with

No dependents will be ok. And business owners that have income flowing to their personal returns will only have 80% of that income taxed. So they should be ok.

The housing market will be slammed. We had 12000 of mortgage interest and still werenít able to itemize. Why own a home? Many will just rent.

Charities will suffer. Many wonít donate if thereís no tax advantage to do so.

The ripple effects in our economy will be dramatic and harsh.

Paychecks will shrink as we adjust withholding to get in line for next years taxes. Less money pumped into the economy.


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Response to ALBliberal (Reply #12)

Sat Feb 9, 2019, 06:08 AM

16. I think the republicans wanted to screw America's charities with their tax bill

and it will. republicans will cause a massive decline in charitable giving, and thus further piss on the poor, which is what their perverted values always bring...Shame on republicans for their greed and mean spiritedness.

&f=1

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Response to Achilleaze (Reply #16)

Sat Feb 9, 2019, 07:33 AM

23. Charitable contributions are still deductible

You just need a much larger amount to itemize now. So if youíre wealthy enough to donate tens of thousands, you get to deduct it.

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Response to spinbaby (Reply #23)

Sat Feb 9, 2019, 08:05 AM

25. Nice (for rich republicans)

Tuff shit for regular US taxpayers

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Response to spinbaby (Reply #23)

Sat Feb 9, 2019, 01:17 PM

75. yep and they raised the amount thats deductible too

very few people actually hit the limit but they increased the deductible amount from 50% of your AGI (adjusted gross income) to 60%.

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Response to spinbaby (Reply #23)

Sat Feb 9, 2019, 01:57 PM

85. The same holds true for mortgage interest.

You just need a much larger amount to itemize now.

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Response to spinbaby (Reply #23)

Sat Feb 9, 2019, 06:37 PM

117. Our nonprofit is hurt because we rely on many small donations

from people who are not wealthy. If they can't get a tax donation, and on top of that they are having to pay more in taxes, they are less likely to donate.

Our year end donations were way down compared to past years because of this.

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Response to Achilleaze (Reply #16)

Sat Feb 9, 2019, 08:44 AM

35. Yup

I gave pretty generously to my church and a couple other things. Didnít ďcountĒ this year, neither did my mortgage interest or state/local/property tax. Still got a refund only because I saw this coming and changed our W4s to get more withheld. Most people did not.
One good thing is that student loan interest is still deductible no matter what. That helped my son, a single renter.

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Response to Achilleaze (Reply #16)

Sat Feb 9, 2019, 11:09 AM

59. I think they view the non-profit sector as a threat

The new crop of authoritarian leaders always attack NGOs for good reason. They represent an independent social force that dictators cannot control

This isn't just about starving the poor, this is also about knee-capping dissent.

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Response to DBoon (Reply #59)

Sat Feb 9, 2019, 02:40 PM

87. That's an excellent point which I hadn't considered. You would think real churches

(as in the benevolent kind) would be targeted for extinction while the Praise-the-Lord, Support-Repuglicon evangelicals may be safe.

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Response to ALBliberal (Reply #12)

Sat Feb 9, 2019, 07:29 AM

22. I worry about charities too

I volunteer for a non-profit and for our fund drive this year we made our goal but just barely as donations were down. Our president speculated in part it was probably due to the new tax law. Makes me wonder how it will go this year. Accountants are recommending people not donate for 2-3 years then make a larger donation in the year they can take a tax break for it as the amount now required for deductions is so high.

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Response to ALBliberal (Reply #12)

Sat Feb 9, 2019, 08:41 AM

33. That is not necessarily true. The elimination of the Personal exemptions, especially for those who

used to itemize deductions, along with the capping of the amount you can deduct for SIT and Property tax, plus the elimination of the interest rate deduction for equity lines of credit unless it is used for home improvement will impact those in the category you mentioned because those deduction eliminations will not only not make it feasible for those to itemize deduction this year, and take the standard deduction, and with the elimination of the personal exemption, many in that category will find they are paying significantly more tax than the previous year where they were able to itemize deductions.

The personal exemption was 4050 for single, and 8100 for married. The Standard Deduction for those not 65 is 12000 for single, and 24000 for married. With the elimination of the personal exemption, that effectively means the standard deduction beccomes 7950 for single, 12000 - 4050, and 15900 for married, 2400 - 8100.

Many are going to be surprised that the new tax tables do not offset that personal exemption loss enough, and find that they in fact will be paying more taxes then they did in the year they were able to itemize deductions.


For those that did not previously itmize deduction, they have the greatest probably to be paying less taxes, but again, with the elimination of the personal exemption, it is not going to be as much as they anticipated.

I agree with your analysis of those who have businesses, and charities will be hit hard, because those that used to itemize will likely reduce how much they used to contribute.

What may help offset the higher tax some will realize who used to itemize deductions is if their state does NOT follow the federal like most states had been doing. California is one such state. Those who itemized in 2017 will find they can still itemize in 2018, with NO CAP on certain itemized deductions, and interest on equity loans can still be deducted if they itemize at the state level in California, along with charitable contributions.

One needs to see if their state conforms to the new tax law or not. It does make doing the tax returns more complicated, but could save them a little if they fall into the category where they can no longer itemize their deductions when they used to be able to.


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Response to still_one (Reply #33)

Sat Feb 9, 2019, 09:38 AM

45. I don't see how states can override federal taxes.

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Response to watoos (Reply #45)

Sat Feb 9, 2019, 09:54 AM

54. California is over-riding it, they just aren't conforming to federal rules. States can confirm or

not conform. There are a few states who don't have state income tax.

"the federal law wonít affect how much Californians pay in state income tax for 2018, although it could make filing tax returns more complicated for some. Those who take the new, higher standard deduction on their federal return will still be able to claim itemized deductions on their state return. Anything that was deductible on a state return last year is still deductible, and state tax rates have not changed."

https://www.sfchronicle.com/business/networth/article/Relax-The-federal-tax-law-won-t-raise-your-13211273.php

https://www.taxcoursecentral.com/ctec-registered-tax-preparer/california-doesnt-conform-to-new-tax-laws/

People will need to check with their individual state if they conform or not. Tax programs such as turbo tax will find the best combination for an individual's return, and tax preparers should be well versed in this

This of course does not mean that they won't eventually conform, but there is no law that they are required to



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Response to watoos (Reply #45)

Sat Feb 9, 2019, 06:46 PM

120. The poster is talking about STATE itemization, not federal itemization.

States can do what they want as to state taxes, even if similar deductions are not allowed on federal taxes.

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Response to still_one (Reply #33)

Sat Feb 9, 2019, 11:57 AM

62. I didn't know about the HELOC change

The banks are probably shitting kittens over that one. One big selling point of those loans was the deductibility of the interest.

Itís beginning to look like the rest of the country can go to hell if thatís what it takes to let Trump cut his own taxes.

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Response to jmowreader (Reply #62)

Sat Feb 9, 2019, 12:29 PM

66. They can only deduct the interest if it is used for home improvement of principle residence, not for

anything else.

Also, I believe casualty losses deductions are limited unless the area where the loss occurred has been declared a national disaster area.


https://www.irs.gov/pub/irs-pdf/p547.pdf



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Response to still_one (Reply #66)

Sat Feb 9, 2019, 03:27 PM

100. That will have some negative effect

on the auto business, too. A lot of people use HELOC money for down payments on cars.

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Response to Mr.Bill (Reply #100)

Sat Feb 9, 2019, 03:41 PM

102. For those who used to itemize it sure will because a good number of folks financed their cars

because they could get a tax deduction on the interest if they itemized.

I suspect a lot of auto dealers will be offsetting that with low or 0% interest, but usually that figures in the total price of the car

The other problem is the tarriffs, which also add more cost to the price of an auto, along with other things.


With the higher cost of healthcare premiums, food, etc., those that realize any tax benefit, will have those benefits moved to the higher costs of things.



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Response to still_one (Reply #33)

Sat Feb 9, 2019, 01:43 PM

81. This:

"The Standard Deduction for those not 65 is 12000 for single, and 24000 for married." What is it for those 65 and over?

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Response to shanti (Reply #81)

Sat Feb 9, 2019, 03:30 PM

101. For those over 65 and single it is 13600. For Married filing jointly over 65 it is 26600.

"Also, the additional standard deduction for filers over age 65 will still be available. In 2018, the standard deduction for single filers is now $12,000 and $24,000 for those married filing jointly. Single filers over 65 can claim an additional $1,600, and married filers over 65 can claim an extra $2,600."

https://www.cbsnews.com/news/tax-reforms-good-news-for-retirees/

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Response to ALBliberal (Reply #12)

Sat Feb 9, 2019, 09:21 AM

42. Nope. In the ne homeowners have a $10k cap on deductions.

My CPS said middle class increase is $2k.

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Response to ALBliberal (Reply #12)

Sat Feb 9, 2019, 11:03 AM

58. First scenario is probably true

unless the taxpayer has saved and gets investment income.

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Response to ALBliberal (Reply #12)

Sat Feb 9, 2019, 01:36 PM

78. Have to disagree with your first sentence. It depends

a lot on whether you live in a high COL city or one where SL taxes are high. Many middle class people here in NoVA pay $7k per year or more in real estate tax alone, on a modest house or condo. If they make the median income, they also pay another $6k or more in state income tax. Most also pay car tax and other taxes. In the past they could deduct these, but now the deduction for all of them together is capped at $10k, and many were moved to a higher marginal % bracket on the same income. So they lose.

It was done intentionally to hurt blue cities and states that already support red states financially, and transfer more money to corporations and billionaires.

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Response to ALBliberal (Reply #12)

Sat Feb 9, 2019, 01:43 PM

82. Tax question for you

You said "And business owners that have income flowing to their personal returns will only have 80% of that income taxed."

What do you mean? The profit on my Schedule C goes into income on my 1040, doesn't it? I suck at taxes, lol.

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Response to Doremus (Reply #82)

Sat Feb 9, 2019, 03:44 PM

103. Sec 199A Deduction for Qualified Business Income

I'm not a tax expert, but I think he was referring to the "Section 199A Deduction for Qualified Business Income" that the tax overhaul added.

In brief it exempts 20% of some pass-through business income (profits form S-Corporations, Limited Liability Companies, Proprietary Partnerships) from Taxable Income if the total Taxable Income is less than $157,500 (above that threshhold you must calculate based on several other factors).

A step-by-step guide to this can be found at:
https://www.journalofaccountancy.com/issues/2018/may/sec-199a-deduction-for-qualified-business-income.html

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Response to Doremus (Reply #82)

Sat Feb 9, 2019, 03:49 PM

104. Postscript

And, from what articles I have been able to read on Trump's business holdings, everything he owns appears to be held in a series of hundreds, or even thousands, of Limited Liability Companies; so obvious how this change is useful to him.

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Response to arthurgoodwin (Reply #104)

Sat Feb 9, 2019, 04:54 PM

108. Harumph.

Useful for Dump and his ilk and of little benefit to me, I think. I'm not an LLC, just file a plain old Schedule C. Bummer. I should probably look into becoming one now that the laws have changed somewhat. Thanks for the reply btw.

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Response to ALBliberal (Reply #12)

Sat Feb 9, 2019, 03:08 PM

97. Coast

Donít forget ALB that trump has also threatened the Chinese with so many tariffs. Theyíll no longer buy houses here. Prices on the Coast will plunge. CA state taxes wonít be deductible either.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 02:54 AM

6. The tax scam will destroy a lot of bank accounts this year

and will be another trigger for the Trump recession

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 03:04 AM

7. I'm really sorry for your sake.

$3K is a lot to owe. Especially when you also have to pay estimated tax for next year each quarter.

My accountant told me that many people he's talked to are having what he calls 'sticker shock' about their taxes.

Good may come of this - people are starting to think about the criminal negligence of the GOP in passing this giant unnecessary tax cut for billionaires and corporations, which was the very height of fiscal irresponsibility.

I'm not thinking working Americans are going to be very happy sacrificing so the billionaires can have just a little more. I'm not.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 03:14 AM

8. Our family is in the same position as you. Our deductions evaporated.

But it's worth it knowing we are funding tax cuts for the rich.


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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 03:18 AM

9. I recall even before the law was passed....

a number of expert tax law analysts said it would be bad and would get even worse after 2020.

Buckle up, everyone! I suspect that with Trumpflation added in, we'll all be tightening our belts.

..... ........

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 04:04 AM

10. GEE, and the moron's tax cuts is STILL NOT BEING PAID for.

fiscal my ass.

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Response to pansypoo53219 (Reply #10)

Sat Feb 9, 2019, 02:47 PM

89. +1000. We'll pay for it, and children/grandchildren.

Let's hope the trumpians all pay for their treachery with loss of freedom and whatever pennies they may actually own. Throw in all the enabling (R)s and funders also.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 05:14 AM

11. It's those with over-16 dependents that are really being hurt

Switching from the dependent exemptions of $4050 each to other-dependent credits of $500 (which at the 22% marginal tax level is about $2300 in value) really hurts. Then there's the new limitations on claiming items on Schedule A that inhibit the ability to itemize.

I volunteer at a low-income tax clinic. Many of our clients instead rely on EITC and ACTC (which are refundable tax credits), as the other-dependent "credit" is non-refundable and many customers already have no taxable income.

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Response to nitpicker (Reply #11)

Sat Feb 9, 2019, 05:59 AM

14. Thanks. That is yet another hit on higher education.

A really big one for a lot of families, of course.

This is becoming a big, growing pattern. I'm remembering the Scott Walker's fascistic, religious-right wish to change the official purpose of WI's state university system to training workers to serve the needs of business. And elimination of liberal arts courses and majors -- not desirable for engineers who work in cubicles and don't need to understand their world or question religious teachings.

It's hardly only in WI.

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Response to nitpicker (Reply #11)

Sat Feb 9, 2019, 09:44 AM

50. wait, other-dependent is non-refundable?

WTF? They're literally saying "take care of your family, but only if you're rich?" That's infuriating.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 05:48 AM

13. Oh, my. I'm sorry. And scared to see ours.

So unfair too. You of course don't need to be hit with this stick to stop voting for what has become wrong to the point of evil.

On the plus side, it suggests a lot of Republican voters will be yelping. Hopefully that becomes all to the good of those they're hurting.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:04 AM

15. republicans lied to, and then screwed Americans to enrich rich republicans

Last edited Sat Feb 9, 2019, 07:04 AM - Edit history (1)

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Response to Achilleaze (Reply #15)

Sat Feb 9, 2019, 02:50 PM

92. Perfect. It might be safer to let the boat go down and see who survives....

Oh, the croc is mighty happy.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:49 AM

19. What is the change in the total tax burden?

Did your liability go up or were the withholding tables fucked up?

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Response to Adrahil (Reply #19)

Sat Feb 9, 2019, 11:11 AM

60. The old withholding was based on nr personal exemptions

Everyone knew how to do that to more-or-less break even.

In the new calculations, you have to estimate your income, then use new tax tables to guesstimate your taxes and appropriate withholding.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:52 AM

20. I went from a typical $3000 refund

to owing the IRS $320. It's not the end of the world but I'm really gonna miss that extra cash in my pocket.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 07:47 AM

24. "taxcut" is an increase for many bluestate middleclass wage earners as

deductions were capped at ridiculously low levels that effect many more in wealthier democratic strongholds. This was a basis of the taxcut for the wealthy. Transfer of wealth to them

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Response to beachbum bob (Reply #24)

Sat Feb 9, 2019, 08:50 AM

36. That and the elimination of the personal exemption is going to bite a good number in that category.

Those who live in states that haven't confirmed to the new tax law, California is one such state, will find that they should still be able to itemize at the state level, which may help a little offset where they cannot itemize at the federal level, because the limits on things like interest on equity loans are not eliminated at the state level

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:07 AM

26. I think I will be in a similar boat. A couple of thousand smaller swing, but I

file single.

There is one silver lining that I am trying to keep in mind: all those people who voted for Individual 1 because they thought he was such a good businessman and would lower their taxes are going to get kicked hard in the groin. Maybe it will knock some sense into some of them.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:13 AM

27. Is anyone else seeing that commercial on tv selling a book about trump's tax bill

and how it can save you tons of money?

It's really awful. I wonder how many people will be duped by that propaganda.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:13 AM

28. Ours was

about the same. Slightly higher refund, a few dollars. Even with itemizing, we don't get close to getting above the standard deduction. How high are these incomes and complicated are the filings? Are there investments or lots of property?

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:13 AM

29. Of course it's all Obama's fault!

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:13 AM

30. My benefit of the trump tax cut was

to pay 15 percent more this year.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:28 AM

31. would it be possible for you to explain to your customers that its a result

of the tax cuts the GOP passed....some people need help connecting the dots

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:42 AM

34. My son adjusted his withholding twice last year and still owe

The withholding tables are bad. My son upped his with holding and still owe $2500. A couple of his fellow associates owe over $4000

I cannot do much on my taxes until I get my K-1 from my firm

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Response to Gothmog (Reply #34)

Sat Feb 9, 2019, 08:53 AM

37. K-1s are notorous for being late, and technically in violation of the law for that. You should

however, be able to estimate based on last year to get a rough idea


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Response to still_one (Reply #37)

Sat Feb 9, 2019, 09:48 AM

52. I had to pay estimated taxes

I increased my last estimated tax payment to give myself some cushion

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Response to Gothmog (Reply #52)

Sat Feb 9, 2019, 09:58 AM

56. you are very wise, and those who were not paying attention may be in for an unexpected tax bill this

year.

I did something very similar. I don't usually do estimated tax, but the 4th quarter of last year I did, in anticipation of that.



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Response to Gothmog (Reply #34)

Sat Feb 9, 2019, 09:42 AM

47. The withholding tables are absolutely broken and you can't convince me it was an accident

You don't have that many people swinging from refund to owing, by that large a margin, without meaning for it to happen.

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Response to Recursion (Reply #47)

Sat Feb 9, 2019, 09:47 AM

51. It was clearly not an accident

trump had the tables adjusted to try to make people feel that they were benefiting from the GOP tax cuts. The tax cuts went to the rich and actually hurt other tax payers

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Response to Recursion (Reply #47)

Sat Feb 9, 2019, 02:41 PM

88. +1

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 09:01 AM

38. Here is a good explanation why many will find not benefit from the new tax law if they used to

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Response to still_one (Reply #38)

Sat Feb 9, 2019, 12:09 PM

63. Thank you I'll read that.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 09:15 AM

40. Sickening! Another reason why I can't stand Republcan/Trumpists.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 09:21 AM

43. Haven't done ours yet. Virginia Dept of Tax came out yesterday and told everyone to hold off

on doing their state returns - due May 1.

While the general assembly is in session there could be changes to offset the Fed changes. I'm hearing $220 for couples and $110 for singles but there's no current immediate effect written into the proposals.

My wife and I both have accounting degrees but she's better so she usually does the taxes. We try to balance it during the year so we don't have a big swing either way and pay or get a refund. We tend to do pretty good but last year I changed withholding and was paying way too much - this may work out for us now but I'm not sure. I also had two months of unemployment on top of a severance (pretty sweet deal really) so I'm not sure how that will work out. I didn't have taxes withheld from the unemployment because I wasn't sure how long I'd be out of work.

The messaging on the tax bill was a mess. From them trying to promote it to the news informing people what was coming. Sure there wer articles for those who stay abreast of these sorts of things but for most people it's going to be like stepping on a rake.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 09:40 AM

46. Yep. I just wrote a check for two grand. I am not ****ing happy.

I was incredibly lucky that the HR person at work warned us what was happening with withholdings so I could keep that money in a separate account and not touch it. But I feel really bad for people whose HR didn't notice, or people who aren't in a situation where they can put aside the extra money. Going to be a tough spring for a whole lot of people who didn't do anything wrong.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 09:42 AM

48. My hope in this

Is that Tom Perez has someone tracking the numbers. Use them to our advantage.

Truth of the matter at least in NJ - we were punished for not being Republicans. For not voting for their party leader (MF 45) we were punished.

Unfortunately - everyone has to pay the price for our smelling Russians in 2016 and 2017.

When we scream "GET RID OF THE ELECTORAL COLLEGE!!!!" - this is why.



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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 09:42 AM

49. For us, it's the Blue State penalty.

It's the main reason we're going to be owing a lot more in federal taxes.

Communities that choose to fully fund their schools and libraries, that are good stewards of their highways and bridges, are the ones the GOP wants to punish.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 09:51 AM

53. I expect mine to go down


No dependants and haven't itemized for 10 years as the standard deduction was always higher. I live in a modest home with relatively low property taxes, so SALT and mortgage interest haven't added up to enough to overcome the standard deduction

Don't even get me started about charitable giving. You donate to charity because it is the right thing to do not because of a tax deduction. Since I don't itemize, none of my giving to animal rescue chaarities was deductable anyway.

I would expect that many lower income folks that rent and don't itemize will see a tax cut.

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Response to MichMan (Reply #53)

Sun Feb 10, 2019, 08:33 AM

146. You would be incorrect. Most everyone I know got less back this year.

And it is not just the blue states who are losing with state property taxes...lots of places in the rust belt and other areas (Buffalo for example) with high property taxes. The Republicans are going to pay for this.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 09:54 AM

55. We ended up fine

but that it because we have very little mortgage interest and three kids.

Oh, and we made sure we increased our amount withheld just to be sure, because a republican plan always hurts those in the 99%.

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Response to Bettie (Reply #55)

Sat Feb 9, 2019, 12:58 PM

70. If you increased your withholding, then you also paid more.

You just spread it out over the year.

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Response to progressoid (Reply #70)

Sat Feb 9, 2019, 01:00 PM

72. Yeah, but we don't have to come up

with a bunch of cash right now. We still got a refund, just less than usual.

After we screwed up and had to pay in one year, we always ensure that we have more withheld than we will owe, just to be safe. Less of a hassle that way!

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Response to Bettie (Reply #72)

Sat Feb 9, 2019, 01:04 PM

73. Yeah, I'm self-employed.

I got stung with a big tax bill a few years ago. It took 5 years to pay off. Never again.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 10:53 AM

57. We need to hit this harder

Now, while the pain is still fresh and folks doing their taxes. This should be a major theme for 2020.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 11:32 AM

61. GOP expertly crafted the 2018 mid-term election and the 2019 tax return filing.

They can now sweat bullets about what will happen in the 2020 election. ("It was Obama's fault -- NOT)

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 12:24 PM

64. This will hurt people's wallets


And that will be good for us in 2020.

Iíve been worrying that if the $1000 actually did happen via refunds we would have a problem.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 12:28 PM

65. I have a question

Did you prepay 2018's property taxes in 2017 to be able to claim the larger amount available to you in 2017? If you live in a state with high property taxes, that could account for quite a bit of the 7K swing.

Also, you're a CPA, why would you even countenance over withholding of $4K in 2017, unless it was related to the aforementioned prepayment of 2018 property taxes?

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Response to customerserviceguy (Reply #65)

Sat Feb 9, 2019, 12:30 PM

68. Mm-hmm.

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Response to customerserviceguy (Reply #65)

Sat Feb 9, 2019, 03:05 PM

95. I did just that and paid big for it

I live in NY and have a house on a large piece of property. The taxes are very high because of where it is located. I will have to sell the house this year because of the tax situation.
Anyway, because of the large deduction last year with a modest income (thank you savings), I was bounced into the AMT and ended up paying several thousand rather than getting a refund. That was like a slap upside my head! I had been hoping for a carryover for this year.
My accountant made me pay estimated tax for this year but Iím not sure it will be enough to cover the whole thing.

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Response to dhol82 (Reply #95)

Sat Feb 9, 2019, 03:22 PM

99. Things went very different with the new tax law

than they did during the Eighties when I had a tax practice. Yes, there were significant law changes, but the only provisions made retroactive to the first of the year were ones that would give tax breaks to people. This time, there was very little time between enactment of the law and the end of the year, so it made planning for an adverse outcome quite tricky indeed.

I'm just plain-jane with my taxes, standard deduction, and that's it. I took out only enough to stay within the first two tax brackets from my IRA this last year, and the 10% I had withheld covered the taxes almost exactly. Yes, the new higher standard deduction helped me. I will have a modest pension kick in at the end of 2020, but even so, I probably won't have to pay Federal or even State income taxes for the rest of my life.

Unless one of those lottery tickets pays out!

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Response to customerserviceguy (Reply #65)

Sun Feb 10, 2019, 11:17 AM

147. Prepaying property taxes would not have helped

It would put us well over the 10000 limit for state and local taxes

As for increasing withholding....we knew where we were since my projection in August. We can pay what we owe. But still a shock.

We will adjust withholding for 2019.

IRS has come out that there wonít be penalties for under withholding so thatís a relief.

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Response to ALBliberal (Reply #147)

Sun Feb 10, 2019, 11:05 PM

154. If property taxes for 2018

were paid in 2017, and many taxing jurisdictions made provisions for this, at least in the NY-NJ-CT area where my lady has a condo, then the limit would not have applied to payments made during that calendar year.

Sounds like you might have had some difficulty getting a handle on what was owed for the 2018 tax year. I can understand that with so many things changing in that tax law. Still, I wonder why you had so much refund for 2017. I always managed my withholding/estimated tax payments to be within a couple of hundred dollars of what my tax liability would be, even though I haven't worked as a tax professional since 1990, unless we count the one year I worked for H&R Block in Utah in 2005, when I couldn't get any other job in that state.

Glad to hear that the IRS is waiving penalties, yes, that is a relief.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 12:30 PM

67. That's terrible

I am scared to death over doing taxes this year.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 12:52 PM

69. Yikes! $7000 more?

If millions of people see increases like that it will definitely have a negative effect on the economy.

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Response to CaptainTruth (Reply #69)

Sat Feb 9, 2019, 08:17 PM

130. Yachts and aircraft for the rich aren't cheap.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 12:59 PM

71. And, don't forget underpayment penalties!!!

I suspect there will be a lot of them.

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Response to Coventina (Reply #71)

Sat Feb 9, 2019, 04:15 PM

106. The IRS has said it will waive underpayment penalties...

This is a well known issue, so the IRS has said it will waive the penalties....BUT you must have paid in 85% or more of your total tax liability in the proper quarterly installments and withholding to qualify for the waiver. That could help several people avoid the additional salt in the wound of having penalties in addition to unexpected amounts due with their federal tax return.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 01:10 PM

74. I'm an exception

My return went from $4K to $7K. We have two kids but were never able to take the child tax credit. This year, we got a $2,000 credit for one and a $500 credit for the other. We paid off our house years ago and haven't been able to itemize for a long time, so the increased standard deduction also helped. Finally, the changes to the AMT helped us get a refund on last year's AMT.

Next year, we lose the $2,000 on our youngest child. We won't get the AMT refund bump again. Overall, I think we'll be roughly back to where we started, but we are getting less taken out, so I think we'll still be ahead on net.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 01:32 PM

76. hubby and i managed to get a slighlty larger refund this year..

..Im retired, hes a Pharmacist..so its just a one income family.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 01:33 PM

77. I filed the other day via TurboTax FREE

I had two early withdrawal penalties I paid on two CDs I had to crack into early for home repairs.

The penalty was included in the taxable INCOME for the year!

To write it off would have required that I use a not free version of TurboTax that they wanted to sell to me for $25.

That said, I opted to not file electronically. I will mail it in.

As for the penalties that I used to be able to write-off, well I guess I'll just forget it.

Disgusting this whole thing is.

In your case to have to owe so much is plain criminal!

Expect nothing less from Don the Con!

DUMP tRUMP!!

& recommend!!

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 01:37 PM

79. How is this happening? Is the actual tax going up?

Or did the tax withholding get too optimistic?

(I still have a few weeks before my investment 1099s are available for my return. I am a bit nervous)

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 01:38 PM

80. 1 K here , what a mess.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 01:46 PM

83. Your withholding didn't change?

I have a small business too. That's the first thing MY CPA advised me on early last year.

Overall, my refund is lower to. But so is my withholding and overall tax liability.

I'm closer to net zero, which is something that we always hear is a good idea to reduce free loans to government.

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Response to fescuerescue (Reply #83)

Sat Feb 9, 2019, 02:47 PM

90. If you live in NY or CA . You are screwed because you lose that

state tax deduction!

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 01:49 PM

84. It's a chess move.

They want us to be made so reactive to the words "paying taxes"---that we''ll agree indiscriminately to any and all tax cuts.

Then they can cut taxes even more on the 1%. They don't give a flying F about the safety net. Let Medicare and SS wither away. All they care about is them not paying taxes.

It's their top priority.

So this tax pain for the middle class right now is all part of teh game plan.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 02:16 PM

86. We're both retired. We got $1000 back last year, this year we're paying $4000. Admittedly....

....I reach 70-1/2 so I had about $15,000 in required IRA and 401k withdrawals, but that certainly didn't make a $5000 difference in our tax liability. Plus our taxable social security benefit went from $14,000 to over $35,000!

People are just now learning about the tax scam of last year.

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Response to George II (Reply #86)

Sat Feb 9, 2019, 03:06 PM

96. How did your soc sec jump so much?

Curious.

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Response to dhol82 (Reply #96)

Sat Feb 9, 2019, 03:19 PM

98. I use Turbotax and never really looked at the details before this year....

...there are some complicated formulas on the worksheet for calculating taxable social security benefits.

I'm still reviewing them to see what caused the difference. I just did my returns a couple of days ago and wait a week or so and redo them from scratch to see if I get the same result. I think it has to do with all the RMDs I had to take this year.



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Response to George II (Reply #98)

Sat Feb 9, 2019, 04:50 PM

107. That's why I happily give my account $135.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 02:48 PM

91. This is going to be a big issue

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 02:54 PM

93. Best way to get a subservient populace, put them all in phony "debt" and then companies can oppress

them at will.
https://www.truthdig.com/articles/the-private-governments-that-subjugate-u-s-workers/

Those who forget the past are doomed to repeat it:

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 05:50 PM

109. This is what they do.

Every time since Reagan. They cut taxes for the top and raise them on the middle, while lying about what they are doing. And Dumbfuckistan falls for it, over and over and over again.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:10 PM

111. It's also going to bring about a big economic downturn. Many

use those refunds to buy things that will not be bought this year. The economy will suffer.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:23 PM

112. Perhaps a TOO obvious question for a CPA, but.. what was the difference in

total taxes you paid for 2017 and 2018?

I only ask because I have seen so many other people complaining about getting a lower 'refund," when what really counts is the difference in taxes actually paid.

Now, now, don't be insulted and hit me in the head.. because you are a CPA.



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Response to pangaia (Reply #112)

Sat Feb 9, 2019, 06:45 PM

119. I'm not CPA, but

Last edited Sat Feb 9, 2019, 09:02 PM - Edit history (1)

the difference between my taxes in 2017 vs. 2018 was a little less--a little over $1000 saved, but this was because my biweekly paychecks contained something like $20 more, and I didn't even notice it. Peanuts.

The thing that bothered me though was that I could not itemize my standard deductions (SALT, mortgage interest) because there were new caps on those. Richer people, who were paying a heck of a lot of mortgage interest due to bigger loans, did get that opportunity. The same thing held, it seems, for state and local taxes (including property tax).

People who make more than I do but who are by no means rich, especially married couples, were probably used to a bigger refund. Did they notice that they had some extra money in their paychecks? Maybe not.

With me, it was a wash. I had an extra $40 a month in my pocket during 2018 and wound up with a hundred or two less in my return.

I am not good with numbers, but my humble income and fairly simple tax situation now illustrate what happened fairly well.

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Response to pangaia (Reply #112)

Sun Feb 10, 2019, 11:20 AM

148. I plan on rerunning 2017 with my 2018 information

This will give me the exact trump effect and I will post back to you. An excellent question!

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:31 PM

116. That was their plan. To hit Democrats, who live mainly in high-tax states.

So you can't deduct as much of those state/local taxes on your federal return. And to make sure, one of our standard deductions was taken away. The one that was left was increased, but doesn't make up for the one taken away.

Mission accomplished.

When we take back the White House and Senate, we need to fix this right away.

Either America starts voting for liberals, or the country is headed for an oligarchy with serfs. The Republican Party is run amok, drunk with power they repeatedly hold for years in Congress and in states. The people who vote for them are uneducated or stupid or foolish, or have hate in their hearts to a degree that overshadows their own interests.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:38 PM

118. April is a terrible month for most freelancers who have to pay quarterlies.

Maybe not in every industry, but in mine December-February is a little slower, so you're not billing as much. Then in April you have to pay taxes owed from the previous year PLUS quarterly estimated taxes for the current year. You try to prepare for it as much as you can, but when you can't predict your income from month to month, it can be difficult. In 2017 I had an average year of income, but got really busy right at the end of the year. So my yearly income total ended up being higher than average, but I didn't have time to really account for it by paying extra on my quarterlies, or making a deductible purchase to help. When April rolled around, I owed HUGE, plus my quarterlies got increased accordingly. I thought I'd maybe owe a few thousand. Instead I owed a combined total (taxes + quarterlies) of more than the cost of a new Honda Civic.

And that was LAST year. This year I'm utterly terrified. I was crazy busy the whole year, so much so that I had to hire lots of subcontractors, so I don't yet have a good sense of how that's going to help me. But with the tax scam, I'm nervous AF that I'm not going to be able to pay what I owe, despite saving as much as I could.

Only in Republikkkan America can you have a good year but ended up being poorer than you were before. Makes me wonder why I'm working 70 hours a week. I'd be happy to pay big taxes if our money went towards universal healthcare and well-funded national parks and infrastructure. But it's all going to a small group of men who already have more than they could ever spend in a lifetime. FUCK THAT.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:46 PM

121. Was there a change in your actual tax bill?

As you know, as a CPA, refunds are just a way of settling up the bill at the end of the year. I can engineer a very large refund or balance due by adjusting the withholdings.

One of the things the tax bill did, I'm pretty sure, was disproportionately reduce the withholdings in order to put more money in people's paycheck during the year.

I have yet to see an article discussing change in taxes owed from year to year - only changes in refunds which (as you know) are just a numbers manipulation matter - want a bigger refund? Withhold more. Want a smaller refund? Withhold less. The change here is that it was the government changing the withholding - and I certainly didn't check to see if the change was more (or less) likely to cover the taxes I owed.

As a former enrolled agent - it does sound as if it will be a rough year (any year is rough when people discover they have a balance due). But my bigger question still is whether the balance due is really a bigger tax bill, or just more pocket change during the year that means you (generically) didn't pay enough during the year to cover the bill.

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Response to Ms. Toad (Reply #121)

Sat Feb 9, 2019, 07:36 PM

126. Yes Ms Toad

I own two homes (one for me and one where I am paying for my mother since she could not afford a house or rent in California).
I have real estate property taxes on both properties
I have california state income taxes

The mortgage interest, real estate taxes and california state income taxes were all previously deductible.
I lost 25K in deductions with the tax code change. So my taxes absolutely increased.
I'm looking at a $7K increase in taxes paid to the federal government on virtually the same income (minor salary increase)

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Response to Fresh_Start (Reply #126)

Sat Feb 9, 2019, 08:20 PM

131. Thanks -

Is that true of the clients you are seeing - or is the shift for some/many/most the sleight of hand due to the change in withholding - that meant many underpaid on their tax bill during the year and now have a smaller refund or still owe money?

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Response to Ms. Toad (Reply #131)

Sat Feb 9, 2019, 08:31 PM

134. I am not an accountant

This is my personal tax experience

The good news if there is any good news...is whatever remnants of the GOP still hanging by a thread in California should be absolutely destroyed after Californians see what their GOP representatives have done to the good people of this state

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Response to Fresh_Start (Reply #134)

Sat Feb 9, 2019, 10:01 PM

141. Sorry - I didn't look carefully & thought you were the OP responding. n/t

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Response to Ms. Toad (Reply #121)

Sat Feb 9, 2019, 08:50 PM

138. i live in NJ and, because of the tax bill, I lost 20,000 in deductions from state and property taxes

How's that for different?

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Response to Mars and Minerva (Reply #138)

Sat Feb 9, 2019, 10:00 PM

140. Did NJ make any adjustments to compensate for the Federal changes -

I know there was some speculation that might happen.

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Response to Ms. Toad (Reply #140)

Sun Feb 10, 2019, 08:00 AM

144. Nothing to change the ax on those deductions...


they tried a "workaround" by doing something with municipal charities but I haven't heard of anything definite. I am guessing with a little luck I'll be able to make up some of the loss with the increase in personal exemptions etc.
We'll see what my Republican accountant comes up with.

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Response to Mars and Minerva (Reply #144)

Sun Feb 10, 2019, 11:10 PM

155. They won't do anything that decreases state revenue.

I guarantee it.

Their budgets are tight as it is.

NY, NJ and New England would be better off as Canadian provinces at this point.

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Response to roamer65 (Reply #155)

Sun Feb 10, 2019, 11:23 PM

157. The idea is to set up Municipal charities so that you can donate to your area....

and write it off as a charitable deduction on your Federal Income Tax in lieu of property and state taxes that can no longer be deducted.
Nothing has happened about it yet...we'll see.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 06:56 PM

123. My refund was hundreds of dollars less than last year.

I was pretty sick about it, but after hearing your story I think I won't be so upset.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 07:29 PM

125. Sadly, it's job security for me.

I work for a bankruptcy attorney.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 07:38 PM

127. does anyone remember this guy?

"All we have to do is replace Obama. ... We are not auditioning for fearless leader. We don't need a president to tell us in what direction to go. We know what direction to go. We want the Ryan budget. ... We just need a president to sign this stuff. We don't need someone to think it up or design it. The leadership now for the modern conservative movement for the next 20 years will be coming out of the House and the Senate. [...]
Pick a Republican with enough working digits to handle a pen to become president of the United States. This is a change for Republicans: the House and Senate doing the work with the president signing bills. His job is to be captain of the team, to sign the legislation that has already been prepared."

Grover Norquist

I just shake my head at all those people that didn't want Hillary and voted for someone else !!!!

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 07:42 PM

128. My favorite part about the IRS: refunds are interest free. But UNDERPAY? You owe them a huge penalty

Government keeps your money interest free all year.

But make a mistake on your estimates and underpay and they penalize you like crazy.

The fact that we have to "estimate" our payments ahead of time is insulting enough considering the IRS's capabilities. The IRS has 80,000 employees and a budget of almost 12 BILLION dollars; why do we have to ESTIMATE anything?

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Response to MadDAsHell (Reply #128)

Sat Feb 9, 2019, 08:14 PM

129. I completey disagree.

The government gets its tax revenue as you earn it during the year. The government also wants a smooth income stream, just as we do. Otherwise we would need to pay taxes at the end year plus interest for the time we held the taxes in our accounts during the year.

And, the IRS cannot possible predict (aka estimate) what your taxable income is going to be as well as you can, unless you'd like the government to have complete access to all of our account information, job performance information, etc ...

I'm fine with the way taxes are collected. I'm not fine with how uber-wealthy get away with such low tax rates given how much of the government infrastructure they use to make their $$.

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Response to Pobeka (Reply #129)

Sat Feb 9, 2019, 08:26 PM

133. 1000+

the problem to me focuses on refunds not actual taxes, When I ran businesses I was looking looking ahead to see where we were.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:32 PM

135. It begs the question.

i know that everybody is programmed to only care about their refund or what they owe. but the real question is "how much did your taxes change?"

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:41 PM

137. I got a big tax cut.

Last edited Sun Feb 10, 2019, 03:42 AM - Edit history (2)

Single, standard deduction w/no kids.

It was a very significant four digit tax cut.

I picked it up off the marginal rate reduction and increase of the standard deduction.

My days of paying the ďno childrenĒ penalty are over.

I did not vote Repuke and never will, regardless of this tax cut. I am in favor of greater tax breaks for the middle class and increasing the marginal rate to 70 pct for over $1M in income.

Itís time to redistribute some wealth and I hope this tax travesty is the catalyst for change.

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Response to ALBliberal (Original post)

Sat Feb 9, 2019, 08:52 PM

139. Ugh. Not looking forward to this. :(

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Response to C Moon (Reply #139)

Sat Feb 9, 2019, 10:06 PM

142. Feel same way I always do my taxes

As soon as I can the second I have all the paperwork, this year I keep putting off afraid I will owe. I have great excuse getting over flu, but I am better enough to do it. Going to force myself this week.

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Response to marlakay (Reply #142)

Sun Feb 10, 2019, 02:11 AM

143. Flu and taxes? Eeeek!

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Response to C Moon (Reply #143)

Sun Feb 10, 2019, 08:07 AM

145. You think that's bad, I have bronchitis, taxes and I'm having my kitchen and bathroom...

demolished to the studs and remodeled at the same time. I have officially changed my address to The Depths of Hell.
I can't find my receipts or my toothbrush.

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Response to Mars and Minerva (Reply #145)

Sun Feb 10, 2019, 12:14 PM

150. :O

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Response to C Moon (Reply #150)

Sun Feb 10, 2019, 02:23 PM

151. I know...I'm being a baby but it pisses me off that these taxes are going to a government run by...

The Trump Crime Family.

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Response to Mars and Minerva (Reply #151)

Sun Feb 10, 2019, 10:33 PM

153. I hear ya!

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Response to ALBliberal (Original post)

Sun Feb 10, 2019, 12:11 PM

149. Tax returns for this year and next year keep this up we're going to win 45 states in 2020

Americans vote with their wallets.

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Response to ALBliberal (Original post)

Sun Feb 10, 2019, 05:42 PM

152. for the first time the Presbyterian Church I occasionally sing at,

Sent a W-9 form for my small earnings. This means there is more economic pressure on the church and myself. And since this is California, we are targeted to be screwed the worst.

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Response to ALBliberal (Original post)

Sun Feb 10, 2019, 11:16 PM

156. The targeting of blue areas in this tax scam was very pinpoint.

It specifically hits liberal cities and municipalities very hard as well as states like NY and CA. These cities quite often have much higher property and local taxes.

I hear people in Ann Arbor near me are getting nailed bad. High property taxes there.

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